Cerebras · OpenAI · Amazon · Jim Cramer · CNBC Technology
More importantly, he argued, the stock's valuation looks increasingly stretched following Thursday's rally
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"So, really, if you buy this stock up here, you're betting on the idea that Cerebras will have much better growth for many years in the future," Cramer said.
Key facts
- The AI chipmaker priced shares at $185 Wednesday, above its already raised range of $150 to $160, before opening at $350 Thursday
- Cerebras generated $510 million in revenue last year, up 76% from a year ago, after sales more than tripled in both 2023 and 2024
- Earlier this year, the company announced a $20 billion multiyear agreement with OpenAI to provide 750 megawatts of computing capacity, while Amazon Web Services recently agreed to deploy Cerebras
- In its IPO prospectus, Cerebras said its processors can be "up to 15 times faster than leading GPU-based solutions" for certain workloads and "more than 10 times faster" in some AI training
Summary
CNBC's Jim Cramer cautioned investors against chasing shares of Cerebras Systems after its explosive market debut Thursday. "While there might be a situation in the future where I can recommend Cerebras, I can't even come close to justifying the valuation up here given how much it's already run right out of the gate," the " Mad Money " host said. Cerebras debuted Thursday in the largest IPO of the year. The excitement is not entirely unfounded, according to Cramer. Cramer also pointed to Cerebras' several high-profile partnerships that could help drive future growth.